The selling came after Nikkei Asian Review reported that Infineon had halted shipments to Huawei.
Intel plans to also sell modems to automakers for use in connected vehicles, as well as to manufacturers for use in connecting industrial equipment.
Infineon, which supplies chip to control the batteries and motors in eight out of 10 of the world's top selling electric vehicles, confirmed the Tesla news.
President Barack Obama blocked a Chinese investment fund from acquiring the U.S. business of German semiconductor equipment maker Aixtron.
Infineon Technologies AG intends to make LiDAR an affordable feature for every new-built car worldwide.
Samsung is open to acquisitions to grab a bigger share of the mobile processor market.
"Infineon would make Intel an instant heavyweight (in the mobile space) and buy them three, four years in R&D," said IDC analyst Flint Pulskamp.
German chipmaker Infineon has agreed to sell its wireless unit to Intel for $1.4 billion, enabling the U.S.chipmaker.